Raw material for batteries Is nickel still in short supply?

Status: 15.06.2021 3:55 p.m.

First a lack of chips, then a lack of wood, soon a lack of nickel? E-mobility also devours resources. Due to the increasing demand for batteries, the demand for nickel is likely to increase strongly. The sufficient supply of the metal nickel could become critical in the next few years. The German Raw Materials Agency (DERA) warns of this in a current analysis. The background to this is the increasing demand generated by the turnaround towards electromobility. “We assume that, depending on the scenario, global nickel demand will increase from around 2.4 million tons today to around 3.4 million tons in 2025,” explains Dr. Michael Szurlies, nickel expert at the Federal Institute for Geosciences and Natural Resources (BGR). “Overall, the nickel market is facing a turning point in terms of demand in the coming years, which will lead to a significant shift in market shares within the areas of application.” As a special department of the BGR, DERA advises the federal government, business and NGOs on raw material issues, for example on security of supply and the ecological consequences.

02/18/2021

Nickel is used for batteries

So far, nickel has mainly been used in steel production: around 85 percent is currently used in the manufacture of stainless steel and alloys, as DERA writes. The use in batteries currently accounts for around five percent. That will change in the near future. Because nickel is now a “key raw material” for the transport and energy transition, according to the study. Due to the strong demand generated by the global expansion of electromobility, the experts expect that by 2025, depending on the scenario, the share could be up to 21 percent. This would make batteries the second largest area of ​​application.

07.03.2021

Most of the nickel comes from Indonesia

Indonesia is the world’s largest supplier of nickel. The experts write that the vast majority of the new global production and refining capacities for the metal are expected there by 2025. This leads to a significant increase in the market concentration for nickel – and also has the consequence that the power of the main suppliers increases. Whether prices can also be expected to rise in the future due to rising demand depends on whether supply also increases. It is not excluded. In order to reduce the dependency on international suppliers, consideration is being given to extracting important raw materials – including nickel – in Europe. Experts emphasize that a European supply chain could make economic sense. In January, Peter Buchholz, head of DERA, said it would be good if Europe also built up its own capacities. The projects just have to be cost-competitive.

background 10/27/2010

Recycling is becoming more important

The automotive industry in particular, but also machine builders with a focus on solar or wind power, steel manufacturers or the IT and medical technology industries are dependent on a continuous supply of basic materials such as nickel. This also applies to so-called rare earths – elements such as cobalt or lithium, which is usually the central raw material for batteries in pure electric drives. The authors of the study also have the issue of sustainability in mind: “In view of the goal of reducing emissions of climate-damaging carbon dioxide through electromobility, in future, apart from questions of availability, the most environmentally friendly and sustainable extraction and processing of nickel will be more important.” One has to ask how more nickel and nickel compounds can be recovered at the end of the life cycle of the products and how less environmentally harmful and at the same time more socially fair promotion can be achieved. On the one hand, there are technological developments towards greater efficiency and fewer emissions. On the other hand, the increasing mining in tropical regions is a problem due to the large amount of land required.

Tchibo increases prices Drinking coffee is getting more expensive

Status: 14.06.2021 10:42 a.m.

The rising prices for green coffee are now also being felt by consumers: for the first time in four years, market leader Tchibo is asking more for its filter coffee. Other dealers could follow suit. In the past weeks and months, some foods have become more expensive, especially vegetables and fruits. Now German consumers also have to dig deeper into their pockets for their favorite drink. From this week onwards, coffee will be more expensive. Tchibo is increasing prices by between 50 and 100 cents per pound – depending on the variety and country of origin. The 500 gram “Feine Milde” pack will cost 5.69 euros in future – instead of the previous 4.99 euros.

A poor harvest is threatened in Brazil

Tchibo justifies the first price increase since 2017 with the rise in green coffee prices. The poor harvest forecast of the world’s largest coffee producer, Brazil, has recently pushed up purchase prices. Tchibo’s move should have a signal effect for the entire industry. Because the market leader usually gives the direction. The group can set the prices in its branches itself. Other roasters and dealers could follow Tchibo’s example.

05/28/2021

Discounters are still waiting

According to Armin Valet from the Hamburg consumer center, the supermarkets will soon follow suit. The consumer advocate predicts that coffee capsules are also likely to become more expensive soon. So far, the discounters Aldi and Lidl have been keeping a low profile. You have not yet commented on price changes. Aldi Süd and Aldi Nord have their own coffee roasters and can determine the prices of their own brands themselves.

Tchibo competitors are likely to follow suit soon

The big coffee roasters are still waiting. Melitta and Dallmayr do not want to comment on possible price adjustments. A spokeswoman for Dallmayr only confirms that the company has been massively affected by the very significant current cost increase. The Jacobs Douwe Egberts Group has announced that it has increased its factory prices due to increased purchasing costs. The Dutch group, which is controlled by the Reimann family, owns well-known brands such as Jacobs, Café HAG and Senseo. Its trading partners are, in particular, grocers who set the end consumer prices on their own responsibility.

analysis 06/09/2021

Green coffee has become almost twelve percent more expensive

The so-called ICO price index, which is made up of several types of coffee, rose by 1.4 percent in April, the sixth month in a row. According to calculations by the Federal Statistical Office, the import prices for green coffee in April were almost twelve percent above the level a year ago. The high-quality Arabica variety in particular has risen significantly in price. The prices have now climbed to their highest level in four years. In New York, Arabica coffee cost around 164 cents a pound at the beginning of June.

02.12.2019

Coffee capsule boom

Coffee is the most popular drink among Germans. The per capita consumption is 168 liters. It is true that significantly less coffee was drunk in cafes, bakeries and canteens during the corona pandemic. At home, however, German citizens consumed eleven percent more. The market for coffee capsules in particular has experienced an unexpected boom in recent years. Competition could soon intensify. With its coffee brand Costa, Coca-Cola wants to attack the market leader Nespresso. The Brause group relies on a partnership with Krüger: The German family company produces the aluminum capsules for Coca-Cola. The capsules are compatible with the Nespresso system.

The growing shortage of building materials has worsened over the past month. According to a survey by the Ifo Institute, 43.9 percent of the companies in building construction reported that they had problems procuring building materials on time. That was twice as many as in April, when only 23.9 of the companies complained of such problems. Civil engineering was slightly less affected, with 33.5 percent in May. In April only 11.5 percent of the companies reported bottlenecks there. “Capacity utilization in the industry is still high,” said Ifo expert Felix Leiss. But more and more companies are worried about the delivery bottlenecks. ” In addition, there are rapidly rising raw material prices. “The prices for sawn timber have almost exploded in the last few months, the sawmills cannot keep up,” said Leiss. Steel has also become considerably more expensive. Insulation materials and various plastics are also in short supply.

Warning of “unprecedented chaos”

Screw manufacturers also fear bottlenecks. The high capacity utilization, raw material bottlenecks and logistics problems have already plunged the international supply chains into “unprecedented chaos”, said Volker Lederer, chairman of the Association of Screws Wholesale (FDS) to the “Handelsblatt”. If the European Union now also levied additional tariffs on the import of iron and steel fasteners from China, it would “conjure up the perfect storm,” warned Lederer. The EU Commission is currently examining whether to impose anti-dumping duties on suppliers from the People’s Republic. The authorities want to announce by June 22nd whether they will impose temporary punitive tariffs. Lederer warns against making it more difficult for Chinese producers to deliver to Europe: “In order to avoid production line failures in Europe, the domestic economy needs the capacities of the entire Asian procurement market – including China.”

The order situation is still stable

The construction industry is following developments critically, but has not yet suffered any losses in orders. “We have a stable order situation,” said Stephan Rabe from the Main Association of the German Construction Industry (HDB) to the Reuters news agency. In March, the companies reported a record order backlog of 62 billion euros. “The pipeline is full, the companies are working very well.” So far, the association expects sales to stagnate this year. “If the impairments persist beyond the middle of the year, the shortage of materials increases, entire construction sites have to be closed and the prices asked continue to rise, then this will have a negative impact,” said Rabe. Then the sales forecast could not be kept. The problems caused by supply bottlenecks have also widened in German industry as a whole. “Almost four out of five manufacturers now report longer lead times for their raw materials,” said IHS Markit economist Phil Smith, which surveys hundreds of managers every month. A growing number of companies complained about negative consequences for production and new business as a result of the forced downtimes.